We've got some help from the Fed cut now. Tuesday's pull back may extend today. The markets have got sold down a bit; globally, there has been a slight feeling of relief. The markets may see a bit of volatility, but markets should see a bit of green after seeing red for some time.
On markets today:
Ben Bernanke has panicked as the Fed always does when the markets get into trouble and he cut 75 basis points. Just as well for the market, that helped the US market off the lows, has pulled many Asian markets into the green albeit markets like China and Taiwan have got back into the red.
Asian markets are okay and far better than the last couple of days. So the global backdrop is slightly more helpful as we go into trade and one should expect a pullback after the carnage of the last couple of days.
We need help today:
We need help very badly and we have got some so I suspect that the pullback which has started yesterday might just about extend today although I do not know to what levels, maybe a couple of 100 points or 300 points on the Nifty and maybe 700-800 points or maybe a 1000 points in the Sensex is possible. Because we have got sold down quite a bit more so than Asia in the last couple of days.
The US has panic so globally I think there is a little bit feeling of relief. However, one must note that big markets of China have gone back into the red after the initial pullback. So it may rise and get sold into, you might see a bit of volatility but generally the morning is much better than the last couple of days and after seeing such a lot of red I think we should talk a little bit green this morning.
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